Tag: gain

Netflix shares jumped as much as 3 percent in Friday’s premarket after multiple analysts upgraded the video-streaming giant. Raymond James’ Justin Patterson upgraded the stock to strong buy from outperform. He also hiked his price target on Netflix to $450 per share from $435, implying a 38 percent surge from Thursday’s close. “After six months of stock underperformance & key debates emerging about competition, margins & [free cash flow], we think these debates are better understood by investors

Netflix shares jumped as much as 3 percent in Friday’s premarket after multiple analysts upgraded the video-streaming giant.

An hour before Friday’s opening bell, the stock was up 2 percent.

Raymond James’ Justin Patterson upgraded the stock to strong buy from outperform. He also hiked his price target on Netflix to $450 per share from $435, implying a 38 percent surge from Thursday’s close.

“Netflix is approaching a profit inflection,” Patterson said in a note Friday. “Coupled with positive app/search data and a solid content slate, we believe there is an upward bias to 2020E Revenue and EPS.”

“Given underperformance in 2H18, vs. traditional media, we believe the combination of positive revisions and emerging signs of long-term profit potential will yield share price outperformance,” Patterson added. He also noted the high viewer numbers from the movie “Bird Box,” and pointed to “Netflix’s advantages in film; convenience, cost, and global distribution.”

Netflix also received an upgrade at UBS after the bell on Thursday, with analyst Eric Sheridan hiking his rating on the stock to buy from neutral. Sheridan also raised his price target on the stock to $410 from $400, implying a 26 percent upside.

“After six months of stock underperformance & key debates emerging about competition, margins & [free cash flow], we think these debates are better understood by investors and reflected in the current stock price,” Sheridan said in a note. “With content spend now at a scale of the major media companies and titles continuing to demonstrate outsized marketplace success, we see the moat around NFLX’s global positioning widening and its long-term secular winner status remaining intact.”

The upgrades from Raymond James and UBS come after a massive surge in Netflix. Since Dec. 24, the stock is up more than 38 percent.

Netflix has also outperformed the other members of the popular “FAANG” trade, which is made up of Facebook, Amazon, Apple, Netflix and Alphabet. Facebook is up more than 16 percent since Christmas Eve, while Amazon is up 23 percent. Apple and Alphabet, meanwhile, are up less than 10 percent in that time.

Benjamin Swinburne, a Morgan Stanley analyst with an overweight rating on Netflix, said share prices should continue to rise as the company keeps growing in overseas subscribers. “We believe Netflix’s opportunity comes from the nearly $500bn global TV market, of which total subscription OTT still represents less than 5% of revenues,” he said.

Swinburne added: “The shift toward life as a vertically integrated streaming business is accelerating, evident in a declining level of licensing obligations to 3rd parties and a ramp in spending on originals.This should translate into 1) a deeper moat, 2) greater operating leverage, and 3) meaningful FCF long-term.”

U.S. West Texas Intermediate (WTI) crude futures dropped 7 cents, or 0.1 percent, to $52.52 per barrel. Despite Friday’s price falls, Brent and WTI are set for weekly gains of more than 7 and 8 percent respectively. A key reason for the emerging glut was the United States where crude oil production soared by more than 2 million barrels per day (bpd) in 2018 to a record 11.7 million bpd. Consultancy JBC Energy this week said it was likely that U.S. crude oil production was already “significantly

Traders said the declines came on lingering concerns over the health of the global economy.

“If we experience an economic slowdown, crude will underperform due to its correlation to growth,” said Hue Frame, portfolio manager at Frame Funds in Sydney.

Most analysts have downgraded their global economic growth forecasts below 3 percent for 2019, with some even fearing a looming recession amid trade disputes and spiralling debt.

For now, however, there is hope that the trade war between Washington and Beijing may be resolved as global markets, including oil, took heart from talks between the two sides this week.

Despite Friday’s price falls, Brent and WTI are set for weekly gains of more than 7 and 8 percent respectively.

Beyond global economics, oil markets are receiving support from supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) aimed at reining in a glut that emerged in the second-half of 2018.

A key reason for the emerging glut was the United States where crude oil production soared by more than 2 million barrels per day (bpd) in 2018 to a record 11.7 million bpd.

Consultancy JBC Energy this week said it was likely that U.S. crude oil production was already “significantly above 12 million bpd” by January 2019.

Given the overall supply and demand balance, Swiss bank Julius Baer said it was “price neutral” in its oil forecast.

“We see the oil market as well balanced into the foreseeable future, as the petro-nations make space for further U.S. shale production growth,” said Norbert Ruecker, head of commodity research at the bank.

U.S. carbon dioxide (CO2) emissions saw a yearly increase of 3.4 percent in 2018, according to preliminary estimates released Tuesday. The rise represents the second-biggest yearly gain in over two decades, independent research provider the Rhodium Group said in a note. The figures are based on “preliminary power generation, natural gas, and oil consumption data.” While a record amount of coal-fired power plants were shut in 2018, emissions from the power sector grew by 1.9 percent, the note sai

U.S. carbon dioxide (CO2) emissions saw a yearly increase of 3.4 percent in 2018, according to preliminary estimates released Tuesday.

The rise represents the second-biggest yearly gain in over two decades, independent research provider the Rhodium Group said in a note. The figures are based on “preliminary power generation, natural gas, and oil consumption data.” The increase was only surpassed by the 2010 figures when the economy was bouncing back from the global financial crash, it said.

Breaking the figures down, the transportation sector remained the largest source of emissions in the U.S. for the third year in a row, with “robust growth in demand” for both diesel and jet fuel offsetting a “modest” drop in gasoline consumption.

While a record amount of coal-fired power plants were shut in 2018, emissions from the power sector grew by 1.9 percent, the note said. This was down to natural gas replacing the majority of this lost generation and feeding the majority of growth in electricity demand.

The buildings and industrial sectors also showed “big year-on-year emissions gains.” This was in part down to “unusually cold” weather at the beginning of 2018. The estimates in Tuesday’s note refer to energy-related CO2 emissions only.

Therefore, this year’s early January performance could be a good omen. Stocks finished Tuesday with a gain, with the S&P 500 up 2.6 percent at 2,574, in the first five days of the year. “Positive investor and trader behavior at the beginning of the year shows that there are good economic and market readings out there,” said Jeff Hirsch, the editor-in-chief of Stock Trader’s Almanac. A solid first five days is a good start to the month of January, which also is its own market barometer or perform

Stocks jump on renewed optimism for a US-China trade deal—here’s what five experts say to watch next 17 Hours Ago | 03:07

When stocks bounce at the beginning of the year, history shows the market is more often up than down at year-end.

Therefore, this year’s early January performance could be a good omen.

Stocks finished Tuesday with a gain, with the S&P 500 up 2.6 percent at 2,574, in the first five days of the year. Stock Trader’s Almanac has studied the “first five days” phenomena going back to 1950 and finds that when stocks finish that period higher, the S&P 500 has been positive 82 percent of the time at year-end with an average gain of 13.3 percent.

“Positive investor and trader behavior at the beginning of the year shows that there are good economic and market readings out there,” said Jeff Hirsch, the editor-in-chief of Stock Trader’s Almanac.

A solid first five days is a good start to the month of January, which also is its own market barometer or performance predictor. A higher January should mean a higher year, and that’s the thinking behind the Wall Street saying: “So goes January, so goes the year.”

Hirsch said the market has even better odds of doing well if January is positive, the first five days are higher and there was a Santa rally in the period that includes the last five trading days of the prior year and first two of the new year. Last month, the Santa rally resulted in a 1.3 percent gain in the S&P 500.

Last year’s market had all three of those things going for it, but still the S&P still ended down 6.6 percent for the year after a turbulent fourth quarter.

The manufacturing industry posted net job gains of 284,000 over 2018, capping its best calendar year since 1997. A priority for President Donald Trump, manufacturing saw marked hiring in December with an additional 32,000 jobs. Most of the gains occurred in blue-collar durable goods manufacturing, with growth in fabricated metals and computer and electronic products, the Labor Department said in its release. The definition of durable goods is items with a life expectancy of three years or more,

The manufacturing industry posted net job gains of 284,000 over 2018, capping its best calendar year since 1997.

A priority for President Donald Trump, manufacturing saw marked hiring in December with an additional 32,000 jobs. Most of the gains occurred in blue-collar durable goods manufacturing, with growth in fabricated metals and computer and electronic products, the Labor Department said in its release. The definition of durable goods is items with a life expectancy of three years or more, such as automobiles, furniture and machinery.

Manufacturing added 207,000 jobs in 2017.

“Manufacturers are bringing people back into the workforce, and we need this trend to continue,” said Dr. Chad Moutray, chief economist at the National Association of Manufacturers. “Our industry currently faces a workforce crisis with more than half a million open jobs today, and 2.4 million jobs expected to go unfilled over the next decade. Closing the skills gap continues to be the top challenge facing manufacturers in the United States and is absolutely essential to ensuring that the sector continues to grow.”

U.S. stock index futures point to a higher open on Monday on growing optimism surrounding U.S.-China trade talks. ET, Dow Jones Industrial Average futures implied a rise of more than 200 points at the open. Futures for Nasdaq 100 and S&P 500 also pointed to a higher open. Over the weekend, President Donald Trump said he had a “very good call” with Chinese President Xi Jinping to discuss trade. Trump’s comments came after both Xi and he earlier this month agreed to a 90-day pause in tariff escala

U.S. stock index futures point to a higher open on Monday on growing optimism surrounding U.S.-China trade talks.

At around 7 a.m. ET, Dow Jones Industrial Average futures implied a rise of more than 200 points at the open. Futures for Nasdaq 100 and S&P 500 also pointed to a higher open.

Over the weekend, President Donald Trump said he had a “very good call” with Chinese President Xi Jinping to discuss trade. The president also claimed that “big progress” was being made on this front. Trump’s statements sparked gains in markets worldwide.

Following the comments, however, The Wall Street Journal reported that Trump “may be overstating how close the two sides are to an agreement,” citing sources familiar with the situation.

Trump’s comments came after both Xi and he earlier this month agreed to a 90-day pause in tariff escalation.

However, market sentiment remained on edge after survey data out of China on Monday suggested that China’s manufacturing activity in December contracted even more than expected.

The pan-European Euro Stoxx 600 index was higher by 0.6 percent with all major bourses and sectors in positive territory. Basic resources stocks led the gains after a rise in Chinese stocks overnight and as fears over a US-China trade war subsided. The ongoing fight between the two largest economies in the world has rattled global stock markets for much of 2018. Friday’s gains come after heavy selling in the region on Thursday, when the DAX closed down 2.4 percent. U.S. stocks ended in positive

The pan-European Euro Stoxx 600 index was higher by 0.6 percent with all major bourses and sectors in positive territory. Basic resources stocks led the gains after a rise in Chinese stocks overnight and as fears over a US-China trade war subsided. The ongoing fight between the two largest economies in the world has rattled global stock markets for much of 2018.

Friday’s gains come after heavy selling in the region on Thursday, when the DAX closed down 2.4 percent. The German bourse is in bear market territory, around 22 percent off its most recent 52-week high. It’s also on track for its worst month since January 2016 and its worst year since 2008.

U.S. stocks ended in positive territory overnight, with the Dow adding 1.14 percent despite seeing major losses during the session. Wednesday also saw Wall Street indexes post their biggest daily percentage increases in almost a decade.

The pan-European Euro Stoxx 600 index rose 0.4 percent, with markets in the region reopening after the Christmas holidays. France’s CAC 40 led the gains, climbing 1 percent, after a sharp sell-off earlier in the week. The Stoxx 600 is still in correction territory and was around 17 percent off its most recent 52-week high as markets opened Thursday. The DAX is in bear market territory, around 22 percent off its most recent 52-week high. In Europe, retail stocks led the gains and were higher by a

The pan-European Euro Stoxx 600 index rose 0.4 percent, with markets in the region reopening after the Christmas holidays. France’s CAC 40 led the gains, climbing 1 percent, after a sharp sell-off earlier in the week.

Germany’s DAX and the Italian FTSE MIB bucked the trend by pushing lower, but those markets missed out on heavy losses seen Monday when both were shut. The Stoxx 600 is still in correction territory and was around 17 percent off its most recent 52-week high as markets opened Thursday. The DAX is in bear market territory, around 22 percent off its most recent 52-week high.

A dramatic surge in U.S. stocks provided some relief to global markets overnight, with the Dow Jones Industrial Average gaining more than 1,000 points in Wednesday’s trading session. It came after a report from Mastercard said holiday sales had grown at their highest rate in six years, calming concerns about the U.S. economy. In Europe, retail stocks led the gains and were higher by around 1.2 percent in early morning trade.

In the dust of Wednesday’s stunning 1,000-point market gain could be the makings of the long-awaited Santa Claus rally. Though the jolly old elf traditionally visits the public before Christmas, he generally doesn’t come to Wall Street until the last week of the year. More broadly, Wall Street now will be looking for additional signs of Santa. The tense relationship between the two has been a worry for Wall Street. Resolving those kinds of issues also could help fuel Santa’s trip to Wall Street.

In the dust of Wednesday’s stunning 1,000-point market gain could be the makings of the long-awaited Santa Claus rally.

Though the jolly old elf traditionally visits the public before Christmas, he generally doesn’t come to Wall Street until the last week of the year. With just four trading days left, including Wednesday, it was about time for Santa to make an appearance.

He did so, and in a very big way.

“You have to respect certain aspects of today’s move,” said Quincy Krosby, chief market strategist at Prudential Financial. “The so-called Santa Claus rally is this period in the market, and that takes into account new money coming into the market.”

There are various aspects of the 1,086-point gain that Krosby sees as significant, the Santa trend among them. Prior to the rally, major averages were wobbling around bear market territory.

First off, the S&P 500 was able to hold a critical support level at 2,350, the breaking of which would have opened “the proverbial trap door” to the downside.

Second, the market has been the subject of a tremendous selling even in the face of positive fundamentals otherwise. Good news on the fundamental side — strong retail sales indications, rising oil prices and even positive headlines from the White House — helped drive a rebound.

“This helps the tone of the market. The consumer feels good enough to go out and spend,” Krosby said. “The market by every metric is oversold and has been due for a bounce.”

There also was an element of short-covering involved, where the rapid rise in the major averages helped drive those betting against the markets to hedge and drive the market still higher.

“In all viable recoveries, ones that are long-term or even short-term, they all begin with short-covering,” Krosby added. “The question is whether we see significant buying come into the market on the close.”

Indeed, the market’s strongest point was the final hour, when the Dow eclipsed its previous single-day point gain record.

More broadly, Wall Street now will be looking for additional signs of Santa. Krosby thinks that could come in the form of pension funds, which might look to window-dress their positions by dumping Treasurys at the end of the year and using the proceeds to buy cheap stocks.

That’s a process that could run counter to previous years when big stock gains helped drive a late-year push to the safety of fixed income.

“Perhaps they take advantage of the sell-off to put more of an allocation into the equity market,” Krosby said. “Remember, the pension funds have a longer time horizon than the markets that we are used to.”

Markets also seemed to rally on news that President Donald Trump has no intention of firing Fed Chairman Jerome Powell. The tense relationship between the two has been a worry for Wall Street.

Resolving those kinds of issues also could help fuel Santa’s trip to Wall Street.

U.S. home price growth slowed in October, a likely consequence of higher mortgage rates having worsened affordability and causing sales to fall. The S&P CoreLogic Case-Shiller 20-city home price index rose 5 percent from a year earlier, down from an annual gain of 5.2 percent in September. That’s down from a 5.5 percent yearly gain in the previous month.

U.S. home price growth slowed in October, a likely consequence of higher mortgage rates having worsened affordability and causing sales to fall.

The S&P CoreLogic Case-Shiller 20-city home price index rose 5 percent from a year earlier, down from an annual gain of 5.2 percent in September. That’s down from a 5.5 percent yearly gain in the previous month.